Latest news with #VDA
CNBC
15 minutes ago
- Automotive
- CNBC
Auto industry sounds the alarm as China's rare earth curbs start to bite
Automotive industry groups are increasingly worried about a rare earth shortage. Several European auto supplier plants and production lines have already been shut down due to China's recent export controls, according to Europe's auto supplier association CLEPA, with the group warning of more outages as inventories deplete. Germany's car industry and auto executives have also sounded the alarm, saying the highly globalized sector is acutely vulnerable to further supply chain disruption. China's Ministry of Commerce in early April imposed export restrictions on several rare earth elements and magnets widely used in the automotive, defense and energy sectors. The curbs came as part of a response to U.S. President Donald Trump's tariff increase on Beijing's products. Some of the affected rare earth elements are vital components to the production of both combustion engines and electric vehicles. CLEPA said Wednesday that while hundreds of export license applications have been submitted to the Chinese authorities since early April, only around 25% appear to have been approved. "With a deeply intertwined global supply chain, China's export restrictions are already shutting down production in Europe's supplier sector," CLEPA Secretary General Benjamin Krieger said in a statement. For its part, the German Association of the Automotive Industry (VDA), the country's main car industry lobby, warned that Beijing's export restrictions could soon cause output to grind to a halt. "The Chinese export restrictions on rare earths are a serious challenge for the security of supply, and not just in the automotive supply chains. Although some licences have now been granted, this is currently not enough to ensure smooth production," VDA President Hildegard Müller told CNBC via email. "A further problem arises from the slow customs clearance of exports for which a valid export licence has been granted. If the situation does not change quickly, production delays and even production stoppages can no longer be ruled out," she added. Müller reiterated the VDA's call for German and European Union lawmakers "to raise this issue emphatically with the Chinese side so that a solution to the situation can be found quickly." Demand for rare earths and critical minerals is expected to grow exponentially in the coming years as the clean energy transition picks up pace. China, meanwhile, is the undisputed leader of the critical minerals supply chain, accounting for roughly 60% of the world's production of rare earth minerals and materials. U.S. officials have previously warned that this poses a strategic challenge amid the pivot to more sustainable energy sources. Germany's BMW reportedly said Wednesday that some of its supplier network had been affected by China's export curbs, while major domestic peers Volkswagen and Mercedes-Benz Group both said they were not experiencing any shortages. "As a matter of principle, Mercedes-Benz has a strategy for all critical raw materials that are purchased directly and indirectly that secures demand in the long term and mitigates supply risks in the long term - knowing full well that raw material deposits are limited in some regions," a Mercedes-Benz Group spokesperson said in an emailed statement. The carmaker added that it was also working on concepts to "significantly reduce" the amount of rare earth metals per vehicle unit. "In the future, Mercedes-Benz wants to use new material compositions to dispense with heavy rare earth metals such as dysprosium in our electric drives," they said. A Volkswagen spokesperson told CNBC that the supply of auto parts containing rare earths was stable. "Our suppliers are continuously working with their subcontractors to obtain the necessary export licenses. We have received indications that a limited number of these licenses have been granted," they said. A spokesperson for BMW was not immediately available to comment when contacted by CNBC. It's not just European carmakers reckoning with a rare earth shortage. Japan's crisis-stricken Nissan said it was also exploring ways to minimize the impact of China's export controls by working with Japan's government and the country's Automobile Manufacturers Association. "It's something that is happening as we speak — and it is true that it will have some impact on the automotive industry," Nissan CEO Ivan Espinosa told CNBC on Wednesday. "We need to continue finding alternatives for the future, keeping flexibility and keeping our options open," he added.
Yahoo
2 days ago
- Automotive
- Yahoo
German auto industry risks production halts over Chinese rare earth export restric
-- Germany's automobile industry could face production delays and potential outages due to China's export restrictions on rare earths alloys, mixtures, and magnets, according to a warning issued by the German auto lobby, VDA. The lobby's head, Hildegard Mueller, highlighted the severity of the issue in a statement on Tuesday, citing slow export license approvals and customs clearance delays as the primary causes of the problem. This is the first time VDA has warned of a potential halt in production due to these issues. The slow granting of export licenses and lags in customs clearances for exports with valid licenses are causing significant issues for automakers. In response to the new rules imposed by China in April, which require exporters to obtain licenses from Beijing, diplomats, automakers, and executives from India, Japan, and Europe are urgently seeking meetings with Beijing officials. Their goal is to push for a faster approval process for rare earth magnet exports. Mueller stressed the urgency of the situation, stating that while some licenses have been granted, it is currently insufficient to ensure smooth production. If the situation does not change quickly, she warned, production delays and even production outages could become a reality. The shortage poses a significant threat to the already strained supply chains of automakers such as Volkswagen (ETR:VOWG_p), Mercedes-Benz (OTC:MBGAF), and BMW (ETR:BMWG), as well as suppliers like Bosch (NSE:BOSH). These companies, among others, rely on rare earths for applications, including motors for electric cars. Related articles German auto industry risks production halts over Chinese rare earth export restric GSK cut to Hold by Berenberg as investors await proof from upcoming drug launches Evercore upgrades Block on lower lending risk and steady consumer trends
The Hindu
3 days ago
- Business
- The Hindu
Regulating India's virtual digital assets revolution
India continues to lead in grassroots crypto adoption, for the second consecutive year in the 'Geography of Crypto' report by Chainalysis (2024). A National Association of Software and Service Companies (NASSCOM) report finds that Indian retail investors poured $6.6 billion into crypto assets and predicts the industry could create over eight lakh jobs by 2030. India also boasts one of the largest and fastest-growing web3 developer cohorts. This vibrancy may seem surprising, given the rocky journey of crypto, known as 'Virtual Digital Assets' (VDA), in India, within the domestic regulatory and policy landscape. In May 2025, the Supreme Court of India questioned the absence of comprehensive and clear crypto regulation in India, with a remark, 'Banning may be shutting your eyes to ground reality'. This observation highlights the dissonance between VDA reality and VDA policy which has created significant challenges for regulators and market players. Navigating India's VDA regulatory gaps India, as a country of strict capital controls and tightly regulated payment systems, has found it difficult to reconcile these frameworks with the decentralised nature of VDAs. The Reserve Bank of India (RBI), as the domestic regulator of monetary policy, began expressing concerns about the potential threats of crypto as early as 2013, highlighting the risks associated with their lack of authorisation from any central bank or monetary authority. Despite this warning, the market saw unassailed growth in India, leading the RBI to issue a second circular in 2018, barring financial institutions from dealing with VDA-related entities. This restriction proved short-lived, with the Court overturning the circular in 2020. The government then turned to prohibitive taxation policies as a stop-gap measure while appropriate regulations were formulated. In 2022, India implemented two key tax policies for VDAs under the Income Tax Act: a 1% tax deducted at source (TDS) on VDA transactions exceeding ₹10,000 under Section 194S and a 30% capital gains tax under Section 115BBH which disallows loss offsetting. Although these measures were designed to enhance transparency and curb speculation, their effectiveness has been limited. Estimates by various industry reports and think tanks show that between July 2022 and December 2023, Indians traded over ₹1.03 trillion worth of VDAs on non-compliant platforms, with only 9% of the estimated ₹1.12 trillion in VDAs held on domestic exchanges. Offshore trading resulted in a loss of ₹2,488 crore in uncollected VDA tax revenue for India. Between December 2023 and October 2024, Indians traded over ₹2.63 trillion on offshore platforms. The cumulative uncollected TDS from offshore exchanges since July 2022 is estimated to exceed ₹60 billion, with the nine blocked exchanges accounting for over 60% of this trading volume. Efforts to block access to non-compliant platforms, such as URL blocking, had limited success. Trade volumes on blocked exchanges rebounded after temporary declines, and web traffic to these platforms rose by 57%. Users continued to bypass restrictions using virtual private networks (VPN), mirror platforms or servers, and by migrating to other non-compliant exchanges. Role of VASPs Guidelines by global standard-setting bodies, such as the International Monetary Fund, Financial Stability Board, and the Financial Action Task Force, converge in favour of comprehensive and risk-based regulation that is harmonised with international standards (a process that is underway). However, these frameworks and regulations rely on domestic, compliant intermediaries or Virtual Asset Service Providers (VASP) that act as the bridge and eyes for regulators. These intermediaries facilitate the alignment of the VDA industry with existing laws and enforcement of policies, and enhance visibility over the ecosystem, while providing crucial inputs concerning on-the-ground issues. In contrast, India's existing policy regime, which inadvertently pushes VDA users to offshore, non-compliant platforms, erodes the country's ability to mitigate the risks presented by VDAs, as well as tax revenues that may have otherwise been collected. In comparison, Indian VASP platforms are sharpening their teeth and maturing rapidly, having shown a willingness to comply with regulations and act in good faith. For example, their collaboration with the Financial Intelligence Unit-India has been instrumental in strengthening anti-money laundering and counter-terror financing controls, earning positive feedback from the Financial Action Task Force (FATF). The aftermath of the devastating hack in 2024, which wiped out $230 million, further showcased proactive measures by Indian exchanges. Many stepped up efforts such as enhancing cyber security measures, setting up dedicated insurance funds in case of future thefts, and uniting to develop and enforce industry-wide cybersecurity guidelines. Need for a framework These possibilities signal the critical role played by VASPs towards a safer digital asset ecosystem. Combined with their contributions to national value creation and economic growth, these platforms present a more viable and constructive channel for funds to flow through under the oversight of Indian regulators. To move beyond the current policy stasis — where tax is levied without meaningful regulation — a balanced, pragmatic and future-proof regulatory framework is necessary. India must take decisive action to create the comprehensive legislation that the crypto industry requires while mitigating associated risks. Urvi Pathak is a lawyer working at the intersection of competition law and technology
News18
26-05-2025
- Business
- News18
ITR Filing For AY 2025–26 Not Started Yet: What Should You Do For Now?
Last Updated: ITR Filing 2025: The core reason for the delay is the absence of e-filing utilities — the software tools necessary to fill and submit ITRs online. Even though income tax return filing is not yet possible, you can use this time to get a head start on your ITR process. The income tax department has notified all seven Income Tax Return (ITR) forms — ITR-1 to ITR-7 — for the assessment year 2025–26, along with ITR-V and the newly introduced ITR-U form. While the forms are available for download, taxpayers are still unable to file their returns, as the e-filing utilities required for submission are not yet functional on the department's official portal. The core reason for the delay is the absence of e-filing utilities — the software tools necessary to fill and submit ITRs online. These utilities usually come in three formats: Online utility (with pre-filled data, preferred by individual taxpayers) Excel utility Offline utility (Java or JSON format, commonly used by professionals) Though forms are live for viewing and download, actual filing cannot happen until these tools are enabled on the income tax e-filing portal. What's New This Year? One key update is the launch of the ITR-U form, introduced under the latest Finance Act and released on May 19. This form enables taxpayers to file or revise returns for up to 48 months, offering more flexibility to those who missed or erred in earlier filings. What You Should Do for Now 1. Identify your applicable ITR form (based on your income sources, profession, and residency status). 2. Gather essential documents, including: 3. Reconcile your AIS (Annual Information Statement) and TIS (Taxpayer Information Summary) with your own records. 4. Compute your total income and tax liability, so that once utilities are available, submission becomes faster. For income from other sources Keep ready your capital gains/loss statements issued by mutual fund houses or intermediaries, or your broking house for FY 2024-25. Bank account statements and TDS certificates. Crypto investments to make appropriate disclosures, particularly in the VDA schedules. Will the ITR Filing Deadline Be Extended? While the delay in utility rollout has raised questions about a possible extension of the July 31, 2025, filing deadline (for taxpayers not requiring audit), an extension is unlikely at this stage. Historically, most returns are filed during June and July, giving the department ample time to activate the utilities and avoid deadline pressure. Filing hasn't started yet, but preparation has. Use this time wisely to collect and organise your financial documents, identify the right form, and cross-check your financial records. Once the e-filing utilities go live, you'll be ready to file smoothly and well ahead of the deadline.
Glasgow Times
24-05-2025
- Entertainment
- Glasgow Times
Dance academy 'changing perspectives' of Glasgow kids
'Many people believe East End kids have no ambition, but really, they are the most hardworking, talented people,' Paige McGarrity, who is also the director of Volume Dance Academy (VDA) told the Glasgow Times. Image by Gordon Terris, Newsquest Although it only formed last year, the Bridgeton-based dance academy has already won several first-place titles at a range of contests, including the Full Out Championships. The school also has 96 individual solo and duo winners, of which Paige says she is so proud. Youngsters at VDA – which takes children from the age of 15 months to 22 years old and teaches a range of dances from street, lyrical and commercial – will compete in their biggest competition at Alton Towers this November. It comes after the academy sold out their one-year anniversary dance show, which will take place on August 2. READ NEXT: Meet Glasgow's newest star inspired by Lewis Capaldi and Sam Fender Paige, who was previously crowned world champion at the United Dance Organisation Competition, said: 'The kids sold out the show in two days and they are just on cloud nine. They can't quite believe it. 'We all cried when the last ticket sold because it felt so special that over 200 people wanted to see them dance. I am so proud of them.' She added: 'Each dancer works so hard, and they deserve to feel this excitement. I believe in these kids so much, and I couldn't have picked a better bunch to fulfil my dream.' The show, which is called Enters the Jungle, has been dubbed the school's most exciting production yet. Filled with throwback classics, vibrant-themed dance costumes and an added Rio De Janeiro Carnival feather feature, attendees are in for a brilliant night. 'The show has been hard work, in all honesty,' Paige said. She continued: 'We did not expect to sell out the show at all, but it has been amazing to see so many people wanting to come and watch these kids perform. We even have a waiting list. 'It's incredible, I'm truly gobsmacked at how fast the tickets have sold out and now the pressure is on to create our best show yet.' Image by Gordon Terris, Newsquest The show will also act as a celebration, given the ups and downs VDA has experienced within its first year. Paige explained: 'The first year has been a bit of a challenge as I didn't expect the dance school to blow up like it did and for it to be so busy. 'I'm forever grateful for what we have built together as a dance family. It was tough getting here but I know the struggles - being an East End kid myself. But winning a world title, it got me thinking that I wanted to inspire more young people to do the same.' And to say that VDA has been inspiring for youngsters in the area seems to be an understatement. 'Volume Dance Academy makes a difference to the East End kids' lives every day,' Paige said. She added: 'Our studio helps improve mental health as it helps the kids express themselves and teaches them to take control of their emotions. The sport itself reduces stress and helps build self-esteem. 'The academy is a safe place and gives the kids a sense of belonging. It also creates an inclusive environment, builds friendships, and teaches discipline. "It just shows that with encouragement and support, the youngsters can do anything. These East End kids just need the right place and right support around them and that is what Volume does.' Image by Gordon Terris, Newsquest READ NEXT: Popular Irish band announce huge Glasgow show The dance academy is currently fundraising to cover the cost of every kid competing at Alton Towers. You can find out more or donate to the fundraiser by visiting
